A Queens Bankruptcy Attorney Can Help With Your Frozen Bank Accounts
Dealing with debt is difficult enough, but sometimes creditors can take further action against you, such as having your bank account frozen. You may find yourself not being able to withdraw money from your account or write checks. This can be scary and feel like a violation of your privacy, but there are ways to have your account unfrozen. Contacting Queens bankruptcy attorney Bruce Feinstein, Esq. will put you in touch with professionals who can help you get access to your money.
Why is my Bank Account Frozen, is This Legal?
Creditors can file a claim against you with the court for unpaid debt, and if the court rules in their favor you may have your bank account frozen. The creditor must get a judgment from the court before attempting to place a levy on your bank account. You will not be able to make withdrawals, but you can make deposits, which can also be frozen. Typically, your account is frozen for twice the amount of debt you owe.
Can a Creditor Take Money Out of My Account?
Yes, but only if the creditor has had a judge enter a “turn-over order” that allows them to gather non-exempt funds. There are certain limitations to the amount of money a creditor can take out of your account as stated in the Exempt Income Protection Act (EIP). If your account has less than $1,740, it cannot be frozen to pay debts. And if you get direct deposit of exempt funds, your account cannot be frozen if it has less than $2,500.
How Can I get my Account Unfrozen?
If you have exempt funds in your account, you can get your account unfrozen. Examples of those funds include:
- 90% of wages earned in the last 60 days
- Social Security / SSI
- Veterans Benefits
- Workers Compensation Benefits
- Public Assistance
- Child Support
- Certain Insurance Benefits
- Life Insurance Policies
You can also Challenge the Account Freeze if:
- The judgment against you occurred because you did not appear at a court hearing.
- A creditor did not properly notify you of the lawsuit against you that resulted in the freeze.
If you find out that your account has been frozen, contact a Queens bankruptcy lawyer immediately. The firm can show you your options for unfreezing your bank account, such as filing a claim of exemption or vacating a judgment.
Queens Bankruptcy Attorney Bruce Feinstein, Esq.
A Queens bankruptcy attorney can help you quickly if you find out that you cannot access your bank account. The Law Offices of Bruce Feinstein, Esq. have fought aggressively for their clients when creditors use a bank levy or other tactics like wage garnishment for debt collection. Their legal advice and support is incredibly important during this time – they will work tirelessly to help you get access to your money. As a member of the Queens County and Nassau County Bar Associations, Bruce Feinstein is a crucial asset to have when your money is at stake.
A frozen bank account can lead to bounced checks, bank fees, and other harmful side effects.